IMF says the correlation between Bitcoin and Asian equity markets has increased
Before the COVID-19 pandemic, the correlation between Bitcoin, Ether, and financial markets was generally low. However, after the pandemic, crypto assets have performed in a manner that reflects the performance of the traditional finance system. The International Monetary Fund (IMF) has noted this correlation, saying that Asian countries were adopting digital assets, showing the growing need for regulation. Growing crypto adoption in Asia According to the IMF, digitizing the payment system could foster the environmental-friendliness of the sector and support financial inclusion. However, there was the potential risk of financial instability following the integration of crypto assets within Asia’s financial system . Investors in Asia have been accumulating crypto in a trend that reflects the broader cryptocurrency market. According to the IMF, the correlation between the performance of the equity markets in Asia and cryptocurrency assets has grown significantly since the...